I am trader and buying a tempo a heavy vehicle having carrying capacity of goods approx 15 metric ton and i will be using same for my business and it will be used for transportation of my goods. Shall i will he eligible for input tax credit? If yes than as per which section or notifications?

Reply- As per Section 16(1), ITC can be availed on goods and services which are used in the course of furtherance of business. Since the words ‘goods’ have been used, it implies that goods includes 'Capital goods' and ‘inputs’.  ITC is available on purchase of Capital goods in one time.

 However section 17(5) of CGST Act, 2017, restrict Input tax credit on few goods and services.

A taxpayer can claim ITC on motor vehicle when used for Transportation of goods. Restriction on taking ITC is on Passenger vehicle, kindly refer section 17(5)(a) of CGST Act.